EV Brief 7/6/21 EV Brief 7/6/21

Daimler, Traton and Volvo jointly invest 500 million euros in heavy vehicle EV charging network

Three of Europe’s biggest truck manufacturers - Daimler Trucks, Traton and AB Volvo plan to invest 167 million euro each ($262 million AUD/$198 million USD) in a new joint venture business to develop a Europe-wide charging network for battery electric heavy vehicles.

Daimler’s e-Actros battery-electric rigid frame truck. Image: Daimler

The notion of electrified heavy vehicles scares many away from even discussing the transition away from polluting trucks; weight, cost, charging and range are all cited as insurmountable obstacles, and there aren’t many manufacturers with production-ready battery-electric models. Even Tesla’s much-lauded Tesla Semi is at least twelve months away.

This joint venture aims to address the issues of range anxiety and charging; according to Martin Daum, chief executive of Daimler Trucks, "The key ingredient in the future rolling-out of electric vehicles will be the infrastructure. It will be the big bottleneck"

The European Car Industry Association (ACEA) wants 50,000 heavy vehicle charge points across Europe by 2030, warning that a dense network of recharging sites in all EU member states is crucial to making road freight carbon neutral by 2050.

All three companies currently have electric trucks in development and are aiming for the joint venture company to be operational by 2022. The company will be headquartered in Amsterdam and lists an initial objective of installing 1,700 charging points within five years.

With time, it’s expected that other manufacturers will join the new joint venture. "In order to accelerate further, we need additional partners, additional networks, and public funds," AB Volvo CEO Martin Lundstedt said. "We will continue to be very fierce competitors. But we need a new platform to compete upon."

The ACEA is also a proponent of hydrogen fuel cell-powered transport and is working to set a target of installing 300 hydrogen refueling stations in the EU by 2025. Daimler, Toyota, Volvo, and Hyunda are among legacy automakers investing in fuel cell technology, and Hyundai is currently operating Xcient hydrogen fuel cell rigid body trucks in Switzerland.

Source: Reuters

Daimler has a diverse portfolio of brands, including Fuso and Freightliner. Image: Daimler

EV Brief 7/2/21 EV Brief 7/2/21

Hyundai's hydrogen-powered XCIENT test fleet surpasses 1 million kilometre milestone

Hyundai fleet of XCIENT Fuel Cell trucks has collectively exceeded 1 million kilometres of driving in 11 months of service in Switzerland. During that time, the fleet has reduced CO2 emissions by over an estimated 630 tons when compared to diesel-powered vehicles.

Hyundai’s 2021 XCIENT Fuel Cell truck. Image: Hyundai

Hyundai has been testing hydrogen fuel cell technology for many years across all forms of transport from the Nexo passenger car we recently reviewed, to heavy vehicles. While we believe that battery electric passenger vehicles are superior to hydrogen fuel cell vehicles in the long term, hydrogen may play an increasingly larger role in transport and logistics.

Hyundai's fleet of XCIENT Fuel Cell trucks has collectively exceeded 1 million kilometres of driving in 11 months of service in Switzerland. During that time, the fleet has reduced CO2 emissions by over an estimated 630 tons when compared to diesel-powered vehicles according to the automaker. The 46 trucks in the fleet have been in the service of 25 Swiss companies in logistics, distribution, and supermarket fulfillment.

“Swiss transport and logistics companies are convinced that hydrogen fuel cell commercial vehicles have the greatest potential among various alternative energy vehicles. The member companies do not stop at simply introducing hydrogen fuel cell trucks. They have high expectations for the hydrogen energy source that holds great potential for the future and believe that hydrogen will be the key for transitioning to eco-friendly energy,” Jörg Ackermann, Chairman of the H2 Mobility Switzerland Association said. “Specifically, the biggest advantage of hydrogen energy is its excellent storability. This suggests that hydrogen will play an important role in the era of eco-friendly energy. Many distribution companies are already experiencing the benefits directly by using the XCIENT fuel cell trucks, and I think that if summer operation is completed successfully, the demand for the XCIENT fuel cell trucks will increase even more."

XCIENT is available in a 4x2 or 6x2 rigid body configurations.

The XCIENT range was launched in 2019, and the 2021 model features revised styling and performance improvements. The XCIENT is available in a 4x2 or 6x2 rigid body configuration. A total of 140 units of the 2021 model will be shipped to Switzerland by the end of this year, with 1,600 planned by 2025.

It’s worth noting that the European Parliament has backed low-carbon hydrogen and plans to significantly increase production over the coming decade but at this stage, there is still limited hydrogen production, storage and refueling capability in the EU. Hyundai Hydrogen Mobility (HHM) leases the XCIENT Fuel Cell trucks to commercial truck operators on a pay-per-use basis which includes the hydrogen supply as well. The benefit for commercial fleet customers is that there is no initial investment.

Hyundai Motor Company has set an annual sales goal of 110,000 fuel cell electric vehicles worldwide by 2025, under its ‘Strategy 2025’ plan. Meanwhile, the wider Hyundai Motor Group plans to ramp up production capacity for hydrogen-powered vehicles to 500,000 units by 2030.

We certainly welcome the decarbonisation of the transportation sector, but would like to see Hyundai developing its battery technology systems to integrate with its rigid body trucks.

EV Brief 4/4/21 EV Brief 4/4/21

Meet the Dacia Spring - an electric crossover you can purchase in Europe for a ridiculous price

If one needed proof that European manufacturers are getting serious about decarbonising their passenger car fleets, look no further than the Dacia Spring.

DaciaSpringElectric(8).jpg — The Dacia Spring is the cheapest BEV on sale in Europe

If one needed proof that European manufacturers are getting serious about decarbonising their passenger car fleets, look no further than the Dacia Spring. A Romanian manufacturer dating from 1966, Automobile Dacia is now wholly-owned by Groupe Renault, and produces a number of passenger and commercial vehicles with an emphasis on practicality and price.

The price of the Dacia Spring varies by country; in Germany it lists for €20,490, in the UK for £14,500 and in Romania for €18,100. Factor in electric vehicle/environmental grants available, and those numbers drop to €10,920 (€-9,570) in Germany, £12,000 (-£2,500) in the UK, and €8,100 (€-10,000) in Romania. Yes, with a generous state grant for environmental vehicles in Romania under the Rabla Plus (Clunker Plus) scheme, this Dacia costs less than some two-wheeled vehicles.

So what’s under the skin? There’s a 33 kW (45 PS) front-mounted electric motor with 125 Nm (92 lb ft) of torque, a 26.8 kWh battery and a compact crossover body that seats five. Before you start decrying the range and performance of those specifications, there’s one more number to consider: Curb weight. At 921 kg (2,030 lb) The Dacia Spring is incredibly light for an electric car, and therefore provides acceptable performance for a city car, and provides a useful range of 225 km (139 miles) on the WLTP combined cycle. That’s perfectly fine for a few days driving around town.

We believe that the future of electric vehicles may look something like the Dacia Spring. It will require a mindset-shift in consumers, but we will no longer be looking for a one-car-fits-all solution, and the Dacia spring is a perfect city car/car-share prospect. The nature of electrification and battery technology means that less mass simply means greater efficiency and range, and therefore a market will emerge for smaller, lighter (and cheaper) BEVs that are designed exclusively for commuting. According to the European Parliament Resolution on Sustainable Urban Mobility, by 2050, 82 percent of Europeans will commute outside an area in which they live (though this may change post COVID-19). Obviously, public transport is key to moving greater numbers of people more efficiently, but Europeans—and Australians and Americans—love their cars, and cheap, efficient urban commuter vehicles will be key to the phase-out of fossil fuel vehicles this decade.

EV Brief 10/27/20 EV Brief 10/27/20

Fiat Chrysler and Peugeot Citroën Merger Looks Set to Proceed

The European Commission looks set to approve the merger of Fiat Chrysler Automobiles (FCA) and Peugeot Société Anonyme (PSA) according to this report from Reuters. The US$38bn merger would create the worlds fourth largest auto manufacturing group, with a suite of brands including Fiat, Ferrari, Maserati, Jeep, Dodge, Chrysler, Peugeot, Opel, Citroen DS and more.

One major sticking point for European regulators has been the estimated 35% market share of the European light van market by Stellantis. The company responded “To allay EU antitrust concerns, PSA has offered to strengthen Japanese rival Toyota Motor Corp., with which it has a van joint venture, by ramping up production and selling it vans at close to cost price, people said. FCA and PSA will also allow their dealers in certain cities to repair rival brands.”

It’s expected that the merger will take 2-3 months to finalise, but should happen well before the offical February 2 2021 deadline.

Source: Reuters

Our opinion: COVID-19 has impacted carmakers significantly, with most revising down their unit sales figures for 2020 and their earnings estimates. FCA and PSA have a good foundation of EV research and development, as well as some good products on the market, but with consumers and government regulations alike demanding cleaner vehicles, billions of dollars will need to be spent by automakers over the coming 3-5 years to produce affordable electric vehicles.

The Volkswagen Group leads the way for legacy automakers in terms of EV R&D (partly due to penalties imposed as a result of the Dieselgate fiasco), and the ID.3 has received generally positive reviews since launch in Q2 2020. For other manufacturers to catch up to Volkswagen (let alone Tesla), It’s going to take a lot of money, and a merger of these two companies into Stellantis Group will allow for larger sharing of platform architecture and drivetrains, as well as manufacturing facilities. It may accelerate the electrification of all brands, and minimise the expensive purchase of regulatory credits to offset emissions from companies such as Tesla.